Frozen & Refrigerated BuyerSTUDY SUGGESTS 3PLs ARE GOING ‘BACK TO BASICS’

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STUDY SUGGESTS 3PLs ARE GOING ‘BACK TO BASICS’

Released at last month’s Council of Supply Chain Management Professionals (CSCMP) EDGE conference in Nashville, Tenn., the 27th annual Third-Party Logistics Study highlights challenges and opportunities facing both shippers and third-party logistics providers (3PLs). But among the findings is an industrywide return to the fundamental principles governing supply chains.

While innovative technologies, globalization and growing access to data have all helped transform the supply chain, they have also created complexity, disconnects and competing priorities, according to the report. As a result, many organizations are going back to basics, with a particular emphasis on data and analytics, customer focus and innovation and transformation.

Other key findings include:

• A (possibly permanent) talent crisis: The industry has been hit hard by labor shortages, with 78% of shippers and 56% of 3PLs reporting that staffing issues have impacted their supply chain operations. Hourly workers (pickers and packers) and licensed hourly workers (truck drivers and equipment operators) remain the hardest roles to fill. Moreover, 27% of shippers and 29% of 3PLs believe the labor shortage is permanent.

• The potential of reverse logistics: Often neglected as the back half of the supply chain equation, reverse logistics is becoming an integral part of both the B2B and B2C experience, says the report. While the returns process is obviously very important to consumer loyalty, both consumer-focused (65%) and business-focused (60%) shippers noted that return expectations are growing. As buying habits continue to shift, noted the report, reverse logistics represents a key opportunity to boost efficiency and improve customer satisfaction.

• Surging ESG: Corporate Environmental, Social and Governance (ESG) remains a top priority for today’s supply chain. However, only 22% of shippers and 17% of 3PLs called themselves a trailblazer and leader in ESG, while 45% of shippers and 41% of 3PLs rated their ESG targets as average. The discrepancy suggests that both shippers and 3PLs may be misaligned in implementing their ESG efforts, notes the report.

Written by supply chain professor and researcher C. John Langley in conjunction with NTT DATA and Penske Logistics, the report is available for download at 3PLstudy.com.